A new IMF report on UK says that “Reducing regional disparities by boosting labor productivity in underperforming regions would promote faster and more inclusive growth. Interregional differences in productivity are related to differences in well-being and inclusion. For instance, UK regions with low productivity tend to have a larger share of young population that is neither employed, in training or in education. At the same time, disparities may signal untapped potential for catching up, and if addressed may contribute to overall growth. The potential benefits of addressing regional disparities have long been recognized by UK authorities, and all recent major party manifestos promised action to reduce them. Policies should be judged based on their impact on growth and inclusion, rather than whether they narrow the gap between particular regions. The challenge for the government is to help address failures or frictions underpinning regional disparities, allowing those less successful regions to build the conditions for economic success, while not cutting off the ability of leading regions to play their role.”